Eastern Airways, a UK airline, is on the verge of collapsing into administration, resulting in the cancellation of its flights. The airline has filed a notice of intent to appoint an administrator, a legal step indicating its imminent entry into administration. This action triggers a temporary freeze preventing creditors from pursuing legal action against the company for ten days. The Civil Aviation Authority (CAA) has confirmed that Eastern Airways has halted its operations.
Established in 1997, Eastern Airways serves various domestic airports in the UK such as Aberdeen, Humberside, London Gatwick, Newquay, Teesside International, and Wick. The airline previously operated flights to international destinations, including Paris, France, and accommodates approximately 1.3 million passengers annually. The Mirror has reached out to Eastern Airways for comment.
Selina Chadha, Consumer & Markets Director at the Civil Aviation Authority, advised passengers against heading to the airport as all Eastern Airways flights stand canceled. Affected passengers are urged to visit the Civil Aviation Authority’s website for the latest updates.
Passengers with bookings as part of a packaged holiday will be assisted by their holiday provider for an alternative flight or a full refund. Individuals with flights not included in a packaged holiday may need to arrange and pay for a new flight if their travel plans are disrupted. Those with scheduled airline failure coverage in their travel insurance policy may file a claim, or explore the possibility of claiming through their debit or credit card provider.
In financial terms, Eastern Airways reported a net loss of £19.7 million for the 12 months ending March 2024. The company’s total debt increased to £25.97 million, while profits declined to £454,000 from £1.55 million in the previous year.
In a similar vein, Fly PLAY, a budget Icelandic airline, recently went into administration, resulting in the immediate cancellation of all its flights. The airline directed passengers to check with other carriers, some of which might offer special fares under the circumstances. Furthermore, Usher Travel Worldchoice, an independent travel agent, ceased trading earlier this month, with Director Gavin Morton expressing profound sadness over the closure after being part of the business for 35 out of its 60 years of operation.
This development follows the closure of Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP earlier this year. To receive more money-saving tips and exclusive offers, subscribe to the Mirror Money newsletter.
